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contractors rework coverage

Covers the cost of tearing out a contractor's work when defects in the work make its inclusion in the project unsafe, as well as the cost of replacing the defective work. The normal method of providing this coverage is by endorsement to the commercial general liability (CGL) policy. (There is no standard endorsement for this purpose, but insurers active in construction markets may have company-specific endorsements that add this coverage back.) For coverage to apply, the work must fail to meet contractual specifications or other industry standards that apply to the type of construction into which the materials were incorporated. There is no coverage with respect to purely cosmetic defects. A similar coverage, rip and tear coverage, covers the cost of tearing out bad work but not the cost of replacing it. The primary markets for rework and rip and tear coverages are concrete and masonry contractors.


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